4 hrs ago
Nasdaq Sets Records as Wall Street Shrugs Off Rising Yields
US stocks rose on Monday even though government borrowing costs climbed.
The Dow ended higher after recovering from a much lower point earlier in the day.
The S&P 500 also gained, and both Nasdaq indexes reached record highs.
Shares of several technology companies, including Nvidia, Tesla and Meta, helped push the Nasdaq up.
SpaceX shares rose 7%.
Meanwhile, long-term US bond yields reached levels last seen more than 20 years ago.
Oil prices cooled, which offered some relief to investors.
Analysts pointed to company earnings, consumer spending and investment in artificial intelligence as reasons stocks have held up.
Some investment firms see more room for stocks to rise, but warn that markets may be uneven.
On Monday, October 5, the Dow Jones finished up 90 points after recovering more than 400 points from its session low.
The S&P 500 gained 0.7%, while the Nasdaq Composite and Nasdaq 100 reached new records.
SpaceX rose 7%, and Nvidia, Tesla and Meta each gained more than 2%, leading Nasdaq advances.
US bond yields reached their highest levels in more than two decades, with the 10-year at 5.349% and the 30-year at 5.703%.
Oil prices eased as Gulf producers moved more crude through the Strait of Hormuz; analysts cited earnings, consumer spending and AI investment as market supports.
- Who
- US stock investors, with gains led by technology and AI-related shares.
- What
- Major US stock indexes rose; the Nasdaq Composite and Nasdaq 100 reached new records despite sharply higher bond yields.
- Where
- Wall Street, in the United States.
- When
- Monday, October 5; the year is not specified.
- Why
- The article cites strong earnings, consumer spending and sustained AI-related investment, while lower oil prices provided some relief.
Reasons for optimism
Reasons for caution
Stocks’ ability to keep rising
Reasons for optimism
Principal Asset Management cited strong earnings, consumer spending and sustained AI-related investment as supports for the market. Morgan Stanley said lower valuations have made some areas attractive, while earnings growth showed few warning signs.
Reasons for caution
UBS said equities could rise over the next 6–12 months but cautioned that the path would not be smooth.
Rising bond yields
Reasons for optimism
Investors continued buying stocks despite the sharp rise in yields, and the article said market strength was supported by earnings, spending and AI investment.
Reasons for caution
Yields reached levels last seen in 2002, and BMO Asset Management said the 30-year yield reaching 6% this month was inevitable.
Key facts
- Dow Jones
- Closed 90 points higher after recovering more than 400 points from the session low.
- S&P 500
- Rose 0.7% and finished within 40 points of a new record.
- Nasdaq indexes
- The Nasdaq Composite and Nasdaq 100 reached new peaks.
- 10-year US Treasury yield
- Reached 5.349%, a level last seen in April 2002.
- 30-year US Treasury yield
- Reached 5.703%, its highest level since May 2002.
- Oil
- Brent crude was nearing a fall below $100 a barrel as Gulf producers moved more oil through the Strait of Hormuz.
- Kuwait oil production
- Kuwait said it was pumping at 75% of its pre-war capacity.
Sources
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